Student Loan Debt Woes

With each passing year, debt has been a concern for many in the country. The student loan debt is the top of the list, with the only classification of debt that may be slightly higher being credit card debt. Each and every year, students take out loans to get higher education. Many of those loans get unpaid. In a perfect world, students would be able to translate their education into a solid job that would be able to allow them to pay off all of their obligations.

The world we live in and most importantly, the economy, is far from perfect.

A four year education, all paid by loans, will lead to students racking up a mass amount of debt just on the interest alone. Students seem unable or unwilling to truthfully look into what they are getting themselves into when they decide to take out a loan to pay for your education. Many have said that the past couple of generations have a distinct lack of responsibility and the mass student loans would be a contributing factor to this.

As a result, students to go to school, but they are unwilling to think of what may happen in the future. A loan seems like a dream, their expenses, their books, and pretty much everything is paid for, all taken care of, as they are focusing on their studies.

Yet as their studies are taken out of, the interest piles up, the amount that students owe keeps piling up. A trip to college does not last forever, sometimes two years, sometimes three, many times four, rarely more, but a few years can go by rather quickly in the tapestry of life.

When the first payment comes due, many times six months after graduation, students find themselves trapped in a pit. A pit which has been created by debt.

So how do we solve this problem over overwhelming and crippling student debt? Obviously, one could argue that loans will be a necessary evil, given that grants and scholarships have declined in coming years. Even if one has the foresight to save for an education for their children, the rate of education is going up at the rate where those going into college will have to start saving potentially years before their parents are born.

Harsher penalties does seem to be the solution, but a person who will not pay, is not going to pay. Some kind of collateral being put up for student loans is an obvious solution to consider right as well. Where at least there is something for banks and loan providers to recoup the losses.

The problem much like many other problems with the economy does not seem to be an overnight, easy fix. The job market is on shaky ground for recent graduates, with experienced workers flooding the market, thus the battle for the jobs that are out there being fiercer than eve before.

The people who suffer the most, are not the ones that will be unable to pay in the end. That is the true ultimate grim outcome of what people have been calling the student loan bubble. There seems to be no end to the pain in sight.